Harmonic Inc (HLIT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.91% | 51.41% | 50.54% | 51.22% | 51.47% |
| Operating profit margin | 9.30% | 3.65% | 7.28% | 3.71% | -2.91% |
| Pretax margin | 8.54% | 3.15% | 7.12% | 1.75% | -6.92% |
| Net profit margin | 5.78% | 13.82% | 4.51% | 2.61% | -7.73% |
Harmonic Inc's Gross Profit Margin has shown a general fluctuation over the years, with a slight decrease from 51.47% in 2020 to 50.54% in 2022, followed by an increase to 53.91% in 2024. This indicates the company's ability to generate profits after accounting for the cost of goods sold.
The Operating Profit Margin, on the other hand, has displayed a more pronounced trend of improvement, starting from a negative -2.91% in 2020, reaching 9.30% in 2024. This suggests that Harmonic Inc has been able to effectively manage its operating expenses and generate profits from its core business activities.
The Pretax Margin has also shown a positive trajectory over the years, increasing from -6.92% in 2020 to 8.54% in 2024. This demonstrates the company's ability to generate profits before accounting for taxes, reflecting its operational efficiency and financial performance.
Lastly, the Net Profit Margin has exhibited variability but a generally positive trend, increasing from -7.73% in 2020 to 5.78% in 2024. This metric indicates the company's ability to convert revenue into net income, reflecting its profitability and overall financial health.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.93% | 2.89% | 6.41% | 2.71% | -1.86% |
| Return on assets (ROA) | 4.92% | 10.93% | 3.97% | 1.91% | -4.95% |
| Return on total capital | 14.03% | 5.08% | 14.03% | 6.57% | -5.69% |
| Return on equity (ROE) | 8.43% | 19.23% | 8.68% | 4.47% | -11.33% |
Harmonic Inc's profitability ratios have shown a mixed performance over the past five years. The Operating Return on Assets (Operating ROA) has increased steadily from -1.86% in December 2020 to 7.93% in December 2024, indicating improving operational efficiency in generating profits from its assets.
The Return on Assets (ROA) trended upward as well, starting at -4.95% in December 2020 and peaking at 10.93% in December 2023 before slightly declining to 4.92% in December 2024. This metric reflects the company's ability to generate earnings relative to its total assets, with a significant improvement in 2023.
Return on Total Capital showed volatility during the period, with a significant increase from -5.69% in December 2020 to 14.03% in December 2022 and remaining at the same level in December 2024. This ratio signifies the return generated from both equity and debt capital invested in the business.
Return on Equity (ROE) also exhibited fluctuations, rising from -11.33% in December 2020 to 19.23% in December 2023 before settling at 8.43% in December 2024. ROE reflects the return on shareholders' equity and portrays Harmonic Inc's ability to generate profits for its equity investors.
Overall, Harmonic Inc has made progress in enhancing its profitability metrics, particularly in ROA and ROE, which indicates improved operational performance and efficient utilization of assets and equity to create shareholder value.